Texas Roadhouse vs Yum! Brands
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The short version
- Yum! Brands is the larger business, with $8.2B of revenue in fiscal 2025 against $5.9B for Texas Roadhouse.
- Texas Roadhouse grew revenue faster (9.4%, against 8.8%).
- Yum! Brands kept more of each dollar of sales as operating profit (31.3% operating margin, against 8.1%).
- Yum! Brands turned more of its sales into free cash flow (20.0% FCF margin, against 5.8%).
- Yum! Brands earned a higher return on the capital invested in it (54.8%, against 33.0%).
- Investors pay more for each dollar of Texas Roadhouse’s earnings: a P/E of 26.5x against 18.8x for Yum! Brands.
| Latest fiscal year | TXRH · FY25 | YUM · FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.9B | $41.5B |
| Revenue | $5.9B | $8.2B |
| Free cash flow | $342M | $1.6B |
| Net income | $414M | $1.6B |
| Growth | ||
| Revenue growth | 9.4% | 8.8% |
| 5-year growth | 19.6% | 7.8% |
| Share count change | −0.8% | −1.4% |
| Profitability | ||
| Gross margin | — | 69.8% |
| Operating margin | 8.1% | 31.3% |
| Net margin | 7.1% | 19.0% |
| FCF margin | 5.8% | 20.0% |
| Return on capital | 33.0% | 54.8% |
| Return on equity | 29.4% | — |
| Balance sheet | ||
| Net debt | −$132M | $11.3B |
| Net debt / EBITDA | −0.2x | 4.1x |
| Dividends and buybacks | $331M | $1.3B |
| Valuation & quality | ||
| P/E | 26.5x | 18.8x |
| Piotroski F-score | 4 | 6 |
Revenue
FY16
TXRH $2.0B
YUM $6.4B
FY17
TXRH $2.2B
YUM $5.9B
FY18
TXRH $2.5B
YUM $5.7B
FY19
TXRH $2.8B
YUM $5.6B
FY20
TXRH $2.4B
YUM $5.7B
FY21
TXRH $3.5B
YUM $6.6B
FY22
TXRH $4.0B
YUM $6.8B
FY23
TXRH $4.6B
YUM $7.1B
FY24
TXRH $5.4B
YUM $7.5B
FY25
TXRH $5.9B
YUM $8.2B
TXRH
YUM
Operating margin
FY16
TXRH 8.6%
YUM 26.5%
FY17
TXRH 8.4%
YUM 47.0%
FY18
TXRH 7.6%
YUM 40.4%
FY19
TXRH 7.7%
YUM 34.5%
FY20
TXRH 1.0%
YUM 26.6%
FY21
TXRH 8.6%
YUM 32.5%
FY22
TXRH 8.0%
YUM 32.0%
FY23
TXRH 7.6%
YUM 32.8%
FY24
TXRH 9.6%
YUM 31.8%
FY25
TXRH 8.1%
YUM 31.3%
TXRH
YUM
Free cash flow
FY16
TXRH $92.3M
YUM —
FY17
TXRH $125M
YUM $712M
FY18
TXRH $197M
YUM $942M
FY19
TXRH $160M
YUM $1.1B
FY20
TXRH $76.0M
YUM $1.1B
FY21
TXRH $268M
YUM $1.5B
FY22
TXRH $266M
YUM $1.1B
FY23
TXRH $218M
YUM $1.3B
FY24
TXRH $399M
YUM $1.4B
FY25
TXRH $342M
YUM $1.6B
TXRH
YUM
Return on capital
FY16
TXRH 18.0%
YUM 34.5%
FY17
TXRH 19.0%
YUM 64.1%
FY18
TXRH 21.7%
YUM 85.2%
FY19
TXRH 22.8%
YUM 79.7%
FY20
TXRH 2.9%
YUM 53.8%
FY21
TXRH 30.9%
YUM 80.0%
FY22
TXRH 31.7%
YUM 62.7%
FY23
TXRH 31.6%
YUM 67.3%
FY24
TXRH 40.0%
YUM 62.4%
FY25
TXRH 33.0%
YUM 54.8%
TXRH
YUM
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.